Morningstar undervalues SpaceX IPO

Morningstar DBRS>>> analysts have valued Elon Musk>>>'s SpaceX>>> at $780 billion, which is less than half of the $1.75 trillion valuation SpaceX>>> is reportedly targeting for its initial public offering. This assessment comes ahead of SpaceX>>>'s planned IPO roadshow on June 4 and its scheduled debut on the Nasdaq-100>>> on June 12. Morningstar DBRS>>> equity analyst Nicolas Owens>>> expressed uncertainty about the prospects for SpaceX>>>'s artificial intelligence business, which includes Xai>>> and social media platform X (social network)>>>, citing unclear economics and competition from OpenAI>>> and Anthropic>>>. Owens also warned that the future promise of SpaceX>>>'s AI segment relies on untested technology such as orbital data centers, and that SpaceX — Starlink>>>, the satellite broadband business, faces technological hurdles. Despite the backing of major investment banks like Goldman Sachs>>>, Morgan Stanley>>>, Bank of America>>> Securities, Citigroup>>>, and JPMorgan Chase>>>, Morningstar DBRS>>> believes SpaceX>>> is significantly overvalued.